Export stocks in Japan were under pressure, likely weighed by the stronger yen, which hurts overseas profits when they are translated back into the home currency. Shares of Toyota closed down 1.88 percent, Nissan lost 3.02 percent and Sony was down 1.66 percent.
Shares of Honda, however, beat the broader index to close up 3.82 percent as investors reacted to its fiscal first-quarter earnings released on Tuesday after market close.
Honda's operating profit for the quarter was up 11.5 percent at 266.8 billion yen, compared with 239.2 billion yen registered in the same period a year earlier. The Japanese automaker said its operating profit increased due to cost reduction efforts and higher revenue associated with sales volume and model mix.
In company news, Samsung Electronics on Tuesday unveiled the large-screen Galaxy Note 7 "phablet" with a stylus pen in a bid to capture the premium end of a slowing smartphone market. However, Samsung shares remained subdued, closing down 2 percent.
Elsewhere, HSBC, one of Britain's largest lenders, reported its earnings for the first half of 2016. Profit before tax fell 28.7 percent on-year to $9.71 billion in the first half of 2016 from $13.62 billion in the same period last year. Adjusted revenue was down 4 percent on year to $27.86 billion.
The bank announced it would also conduct a share buyback of up to $2.5 billion in the second half of 2016 and said it would sustain annual dividend at current levels for the "foreseeable future."
Hong Kong-listed shares of HSBC traded up 1.57 percent in late afternoon trade.
Major Australian miner, Rio Tinto, also reported half-year earning after market close, which saw its first half underlying earnings drop 47 percent from $2.92 billion in first half 2015 to $1.56 billion in first half 2016. The miner also declared an interim dividend of 45 U.S. cents per share for first half 2016.
Shares of Rio Tinto closed near flat at 49.42 Australian dollars.
Oil prices retreated during late Asian hours, with U.S. crude down 0.08 percent at $39.48 a barrel. Global benchmark Brent futures fell 0.12 percent to $41.75.
Energy plays in Asia Pacific closed mixed, reversing some of their early losses; Santos shares finished up 1.65 percent, Woodside Petroleum ended flat at A$26.44 a share, Japan's Inpex closed down 0.27 percent and Fuji Oil Holding was off by 2.93 percent.